Author: Theresa Sweeney

2024 CWT-Assisted Export Sales Reach 183 Million Pounds

Posted on by Theresa Sweeney

CWT member cooperatives secured 179 contracts in December, adding 57.2 million pounds of product to CWT-assisted sales in 2024. In milk equivalent, this equals 515.2 million pounds of milk on a milkfat basis. These products will go to customers in Asia, Oceania, Middle East-North Africa, Central America, the Caribbean and South America and will be shipped from December 2024 through June 2025.

Total CWT-assisted sales in 2024 in milk equivalent totaled 1.674 billion pounds on a milk fat basis. On a product volume basis, this is equal to nearly 183.6 million pounds. Product destinations include Asia, Central America, the Caribbean, Europe, Middle East-North Africa, Oceania and South America.

Exporting dairy products is critical to the viability of dairy farmers and their cooperatives across the country. Whether or not a cooperative is actively engaged in exporting cheese, butter, anhydrous milkfat, cream cheese, or whole milk powder, moving products into world markets is essential. CWT provides a means to move domestic dairy products to overseas markets by helping to overcome U.S. dairy’s trade disadvantages.

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export shipments. CWT will pay export assistance to bidders only when export and delivery of the product is verified by the submission of the required documentation.

CWT suspended intake of new bids starting in January 2025 pending a program renewal vote in March.

Dietary Guidelines Report Shows Encouraging Signs for Dairy

Posted on by Theresa Sweeney

The Dietary Guidelines for Americans Advisory Committee Scientific Report released Dec. 10 reaffirmed the importance of dairy products to nutrition, a positive sign for milk producers in what may be in the final guidelines due to be released this year.

The advisory committee continued its three-servings-a-day dairy recommendation included in the current guidelines and maintained dairy as a separate food group. It also noted the importance of lactose-free dairy as an equitable nutrition solution and acknowledged the wild nutritional inconsistencies of plant-based beverages, a recognition of reality that reflects both science and consumer sentiment.

“NMPF thanks the Dietary Guidelines Advisory Committee for recognizing dairy’s important role in a healthy diet and its continued recommendation of three servings of dairy for Americans two years and older,” NMPF President & CEO said in a statement the day of the release.

“Throughout this process, the committee looked carefully at the nutrition dairy products provide,” Doud said in the statement. “The committee’s scientific review showed that reducing or eliminating dairy from the diet leads to undernourishment in key nutrients for millions of Americans.

“The review also made clear that expanding the food group to include additional plant-based alternative beverages outside of fortified soy is not supported by scientific evidence. Specifically, the committee noted “the direct substitution of plant-based milk alternatives for cow’s milk within the patterns may introduce unintended consequences for meeting other nutrient recommendations and may vary by product selected,” he said.

Despite the good news for dairy, the guidelines still did not accept recent science showing the nutritional benefits of full-fat milk and undervalued the nutritional benefit of low-fat flavored milk to populations that otherwise not might drink milk.

“We are disappointed that the committee only recommends consumption of unflavored milk, especially as they acknowledged that flavored milk contains beneficial nutrients and did not explicitly conclude any connection between flavored milk consumption and obesity risk,” Doud said.

“It is reassuring that the committee came to multiple conclusions supporting dairy that are backed by decades of scientific evidence. We encourage the agencies to look further into recent science supporting the benefits of whole milk in the diet,” he said.

NMPF will continue to advocate for all forms of milk as the federal government crafts a final version of the Dietary Guidelines for Americans.

DMC Margin Drops Again – to Third Highest Ever

Posted on by Theresa Sweeney

The monthly margin under the Dairy Margin Coverage (DMC) program lost $0.88/cwt from a month before, yet, at $14.29/cwt, still came in as the third highest since margin protection became the basic safety net program for dairy in 2015.

The November U.S. average all-milk price dropped by $1/cwt from October to $24.20/cwt, while the DMC feed cost formula declined by $0.12/cwt. A lower soybean meal price more than offset a higher corn price; the premium alfalfa hay price was little changed.

The end of December dairy and grain futures indicated that the DMC margin would average around $12.50/cwt for all of calendar year 2025, which would be $0.60/cwt higher than the 2024 annual average and well above the trigger under which payments begin.

Year-End Legislation Preserves Dairy Safety Net, Ensures Disaster Relief

Posted on by Theresa Sweeney

Following advocacy from NMPF and other farm stakeholders, Congress passed legislation Dec. 20 extending the 2018 farm bill through 2025 and providing relief to farmers who suffered losses from natural disasters in 2023 or 2024.

The extension continues the Dairy Margin Coverage safety net for the entirety of 2025. Consistent with the extension enacted in 2023, the 2019 partial production history update is part of the underlying DMC program and will remain so over the long term. In addition, those producers that initially signed up in 2019 using the five-year “lock in” option will continue to receive a 25 percent premium discount in 2025. Further, the onset of permanent law, which would trigger outdated government support known as the “dairy cliff,” is also averted through the end of next year.

The disaster assistance portion of the package provides the U.S. Department of Agriculture with $30.78 billion to offer relief to producers who endured losses, including for milk, in 2023 and 2024 on account of a wide variety of natural disasters, including droughts, wildfires, hurricanes, floods, derechos, excessive heat, tornadoes, winter storms, and freezes. Within this larger total, the bill sets aside $2 billion for assistance to livestock producers for losses related to drought, wildfires, and floods.

NMPF is grateful to Rep. David Valadao, R-CA, for leading efforts to enact the overall package and for securing the inclusion of floods on account of damages California dairy farmers endured last year due to livestock relocation, shelter-in-place, and feed crop losses. The bill also allows USDA to provide some support in the form of block grants to states, a priority for southeastern producers recently impacted by devastating hurricanes.

With this package signed into law, NMPF looks forward to working with the House and Senate Agriculture Committees to complete a new farm bill in 2025 that makes needed policy improvements and provides dairy farmers and their cooperatives long-term certainty for the years ahead.

New Year, New Challenges – New Opportunities for Dairy

Posted on by Theresa Sweeney

A new year, a new administration, a new Congress, and new challenges. Regardless of what does or doesn’t happen this year, buckle up. And welcome to 2025.

The watchword of the year is change. Voters demanded it, and members of Congress and the new administration are vowing to deliver. At the same time, what those changes may be, how they occur, and which ones happen when, remain very open questions. Until new leaders in federal agencies are in place, and until congressional coalitions begin to coalesce, where dairy’s priorities fit into the broader picture remains to be seen – and as last month’s column stated, sorting out what’s real and what isn’t, and acting accordingly, is itself a critical area of emphasis in 2025.

But we do know this: We at NMPF are ready to pursue and seize the opportunities for better farm policy that will undoubtedly present themselves over the course of the next year. Here’s why:

  • We’re coming off a great 2024. Our successful efforts at building what became the foundation of a USDA Federal Milk Marketing Order modernization plan that farmers can get behind; our efforts to maintain dairy’s prominence in the federal Dietary Guidelines for Americans as reflected in its recent scientific report; and our leadership in developing export markets through collaboration with the U.S. Dairy Export Council and others, all create the muscle memory and momentum that carries us into this year with credibility and confidence.
  • We have a great team. In each of our key areas of emphasis – government relations and regulatory affairs, economics and trade – we have seasoned, well-connected staff working hard to understand the new policy environment and make it work for dairy farmers and their cooperatives. As Washington transitions, we are making the phone calls and meeting the key players as they emerge, ensuring our interests are on their minds.
  • We speak with a consistent voice. As we saw throughout FMMO, the power of farmer unity is not to be underestimated. By representing the cooperatives that handle the vast majority of U.S. milk, we play key roles in nourishing Americans and the world while boosting rural economies. That’s our voice – and it’s a voice to be reckoned with that’s recognized in policy circles.
  • We are supported by the collective strength of our members and the broader dairy industry. NMPF takes pride in being a leader, but we also know we are far from alone in our efforts. Our colleagues among cooperatives and our friends in the broader dairy and agricultural communities create momentum and quality teamwork as we seek our goals together. It’s like returning a kickoff in football – a team that has the ball, knows its assignments and makes the right blocks can make it a long way downfield. And we do, and we will.

That doesn’t mean we’ll always be on offense. When proposals come up that create problems for dairy farmers and their cooperatives, we will respond effectively on behalf of our members. Within the new Washington are many perspectives, and we will work to support the outcomes that best allow dairy to thrive. We are confident of positive change – we also know that much of it won’t come easily.

But above all, we’re ready. Ready to embark on a new path in an era that has its risks and pitfalls, but that also holds exciting opportunities. Let’s work together, and we’ll make good things happen for dairy.

Gregg Doud

President & CEO, NMPF

 

Vitaliano’s Valedictory: Economist Shares Thoughts on Dairy’s Evolution

Posted on by Theresa Sweeney

After nearly four decades as an economist at NMPF, Dr. Peter Vitaliano is retiring at the end of the year. He predicts a bright future for the industry.

“The U.S. dairy industry produces a huge variety of great products, for which consumption is continuing to grow,” Vitaliano said in a Dairy Defined Podcast. “It has very progressive farms and farmers, and great leadership amongst our organizations, and great organizations. That has been the case when I came, it’s the case now, and it’s going to be the case for many years in the future.”

Vitaliano, NMPF’s longtime chief economist, reflects on the evolution of policy challenges for the dairy industry in the podcast, explaining how shifts in the industry have created greater unity – and a more effective NMPF. For more of the Dairy Defined podcast, you can find and subscribe to the podcast on Apple Podcasts and Spotify under the podcast name “Dairy Defined.”

Media outlets may use clips from the podcast on the condition of attribution to the National Milk Producers Federation.

NMPF Statement on Dietary Guidelines for Americans Advisory Committee Scientific Report

Posted on by Theresa Sweeney

From NMPF President & CEO Gregg Doud:

“NMPF thanks the Dietary Guidelines Advisory Committee for recognizing dairy’s important role in a healthy diet and its continued recommendation of three servings of dairy for Americans two years and older.

“Throughout this process, the committee looked carefully at the nutrition dairy products provide. The committee’s scientific review showed that reducing or eliminating dairy from the diet leads to undernourishment in key nutrients for millions of Americans. The review also made clear that expanding the food group to include additional plant-based alternative beverages outside of fortified soy is not supported by scientific evidence. Specifically, the committee noted “the direct substitution of plant-based milk alternatives for cow’s milk within the patterns may introduce unintended consequences for meeting other nutrient recommendations and may vary by product selected.” This is especially important, as the dietary guidelines greatly affect the food options available to children through school meals and other nutrition programs.

“NMPF also thanks the committee for acknowledging that dairy is an equitable option that provides accessible and affordable sources of essential nutrients to everyone, and that lactose-free and lactose-reduced dairy foods can provide those same nutrients for people who may not be able to tolerate regular dairy.

“We are disappointed that the committee only recommends consumption of unflavored milk, especially as they acknowledged that flavored milk contains beneficial nutrients and did not explicitly conclude any connection between flavored milk consumption and obesity risk.

“It is reassuring that the committee came to multiple conclusions supporting dairy that are backed by decades of scientific evidence. We encourage the agencies to look further into recent science supporting the benefits of whole milk in the diet. The committee found evidence that substituting higher-fat dairy with lower-fat dairy showed no association with cardiovascular disease morbidity, and it also found evidence of positive benefits for growth and bone health specifically related to whole milk consumption by young children. We see these conclusions as positive steps. We will continue to advocate for consideration of full-fat dairy in the final dietary guidelines expected to be released next year.”

Prairie Farms, MMPA’s Chapin Take Top NMPF Communications Honors

Posted on by Theresa Sweeney

Prairie Farms Dairy, Inc., took top honors in NMPF’s annual cooperative communications contest, winning five categories and the competition’s “Best in Show: Writing” award announced Oct. 10. A farmer-owner of Michigan Milk Producers Association (MMPA), Doug Chapin, received NMPF’s Farmer Communicator of the Year award.

Edwardsville, IL-based Prairie Farms also took one second-place finish and two third-place finishes in the competition, which recognizes the top communications efforts among NMPF’s member cooperatives. The Best of Show: Writing award was given for Prairie Farms’s  article, “R-Homestead Holsteins – 150 Years of Family Tradition.”

“This was a good feature showing the history of a small Illinois dairy with the father, Dave, having a long history of activism in Illinois boards and commissions,” the competition review wrote. “The story also touches on challenges such as why an 80-head dairy hasn’t expanded like others. It also highlights Dave’s interest in genetics with his herd as well. It’s a good, rounded, thorough story of a single family farm.”

Chapin was recognized for his leadership in communicating farmer and co-op perspectives on challenging issues that were of top priority to dairy farmers and the entire industry throughout 2024, including dairy’s response to the discovery of the H5N1 influenza virus in dairy cattle and efforts to modernize the Federal Milk Marketing Order system.

At a time when simply speaking out on H5N1 invited additional scrutiny, Chapin ably represented dairy farmers and the cooperatives they owned by addressing consumer and industry concerns during moments of great uncertainty early in the H5N1 outbreak.

“During the H5N1 crisis in Michigan, Doug was instrumental in advocating to legislators for a science-based regulatory approach, representing dairy interests to the media, and maintaining critical industry relations within the agriculture community,” Michigan Milk Producers Association said in its nomination letter. “His efforts ensured that the dairy community’s perspective was front and center, demonstrating his unwavering commitment to the industry and the health and safety of workers and cattle.”

Chapin also “played a crucial role in the Federal Milk Marketing Order reform by testifying on behalf of NMPF and the Michigan Milk Producers Association,” MMPA continued. “He advocated for the higher of Class 3 or 4 proposal for the Class I skim milk price mover, supporting his testimony with data and his farm’s experience during the pandemic. His participation ensured that his peers’ voices were heard in the reform process.”

Chapin is the chairman of the board for MMPA and a member of NMPF’s executive committee. He farms near Remus, MI. In an NMPF Farmer Focus article to be published later this month, he said that in the early days of H5N1, dealing with uncertainty about the virus and the necessity of a response by state and federal officials. “Our objective was to make sure that the response made sense and was manageable by our dairy producers, to make sure that they could operate within the guidance that Michigan was putting out and work with the USDA,” he said.

“It’s important to remember that there is still a lot we don’t know about the virus, and early on, there was even less,” he continued. “So we wanted to make sure we were using real facts and the best science we had to make sure we were making good decisions.”

The “Best of Show” award is selected from the first-place entries in the contest’s main areas: publication, writing, graphics and special projects. In addition to Prairie Farms’s recognition in the writing category, Upstate Niagara Cooperative won publications for its annual report; Dairy Farmers of America won graphics for its photo, “Dairy Fountain at Sunset,” and Land O’Lakes won the special projects category with its video series, “Rural is Incredible.”

NMPF Works to Mitigate Port Strike Disruptions

Posted on by Theresa Sweeney

A port workers strike that threatened millions in U.S. dairy exports was successfully limited Oct. 4, after NMPF and the U.S. Dairy Export Council (USDEC) called on the Biden Administration to intervene in the port workers strike.

NMPF and USDEC in an Oct. 1 joint statement and Oct. 2 industry letter co-signed by more than 270  agricultural, manufacturing, retail and additional supply chain stakeholders helped apply pressure on the negotiating parties, who agreed to resume work on Oct. 4.

More than $4.5 million in U.S. dairy exports moved through east and gulf coast ports in 2023 and a work stoppage forced exporters to cancel shipments and undertake costly reroutes. NMPF and USDEC relayed information between exporters and USDA to highlight and address storage and rerouting challenges as a result of the strike.

The International Longshoremen’s Association reached a tentative agreement with the United States Maritime Alliance to suspend the strike and resume normal operations on Oct. 3. NMPF and USDEC welcomed the end to the strike and pressed both parties to come to a long-term agreement before the current contract extension expires on Jan. 15, 2025.

FARM Leads discussion on H5N1, NMPF Talks FMMO, YCs Plan Future at World Dairy Expo

Posted on by Theresa Sweeney

NMPF and the FARM Program held sessions Oct. 3 and 4 exploring current industry happenings at the World Dairy Expo in Madison, WI. Dairy farmer members, NMPF staff and other industry experts participated, sharing insights and discussing ongoing efforts to drive the industry forward.

NMPF’s National YC Program kicked off Oct. 3 with a panel discussion on farm transition planning. NMPF members Ben Smith of Cool Lawn Farms in Remington, VA, Steve Ohlde of Ohlde Dairy in Linn, KS, Hannah Lansing of J&K Dairy in Sunnyside, WA and Myron Czech of Pike Hills Dairy in Little Falls, MN shared their experiences and insights with farm transitions.

Later that day, the FARM Program partnered with Uplevel Dairy Podcast to bring Expo attendees exclusive insights into the ongoing H5N1 animal health outbreak. Veterinary and producer perspectives were shared during the panel discussion, which discussed best practices for mitigating H5N1 risks and preparing for a potential outbreak. NMPF’s Miquela Hanselman shared recommendations to strengthen producers’ disease preparedness plans.

The day concluded with another panel discussion featuring Peter Vitaliano, NMPF’s Vice President of Economic Policy and Market Research, who examined the short- and long-term impacts of the Federal Milk Marketing Order (FMMO) modernization process on dairy farmers. He was joined by Land O’Lakes’ Pete Kappelman and Somula Schwoeppe, owner of Schwoeppe Dairy Farm. The panel discussed the USDA’s proposed updates and next steps in the FMMO modernization process.

NMPF’s National YC Program partnered with the Dairy Girl Network on Oct. 4 to host a panel featuring women leaders in the U.S. dairy industry. The event, which reached over 1,500 attendees and livestream viewers, included Krysta Harden of the U.S. Dairy Export Council, Joanna Shipp of Bowmont Dairy, Krista Knigge from the Wisconsin Department of Agriculture, Trade and Consumer Protection, and Gertie van den Goor of Goma Dairy Farm. The discussion highlighted leadership experiences, strategies for overcoming industry challenges and the evolving role of women in dairy.